/GettyImages-182148217-bankruptcycourthouse-d0a5bb756821447a8cb7b8392efb7ef2.jpg "Bankruptcy Rates by State 1")
Chapter filings by people have been down throughout the USA in 2021, with the typical nationwide per capita price falling to 1.29, from 1.71 in 2020. Nonetheless, vital variations exist among the many states. Here is a have a look at the latest numbers and why they’re falling.
Key Takeaways
- Particular person chapter charges got here down after the Nice Recession of 2007 to 2009, stabilized between 2016 and 2019, then dropped once more after the arrival of the coronavirus pandemic.
- In 2020, for instance, chapter charges plummeted by 30%. They fell once more in 2021.
- Though chapter charges have been down in each state for 2021, massive variations stay among the many states.
How the Pandemic Took a Toll on Chapter Charges
Within the aftermath of the Nice Recession of 2007-2009, chapter charges within the U.S. declined steadily. From 2016 to 2019, they leveled off at slightly below 2.5 filings per 1,000 U.S. residents, solely to start out falling additional with the arrival of the COVID-19 pandemic.
In 2020, the mixed Chapter 7 and Chapter 13 chapter price dropped to 1.71 per 1,000 individuals, from 2.44 the 12 months earlier than, in accordance with the American Chapter Institute. That 30% plunge was largely attributed to the easing of economic stress on many households by federal stimulus measures, reminiscent of elevated authorities advantages and moratoriums on evictions and a few foreclosures.
In 2021 the pattern continued.
Extensive Variations Stay Amongst States
Just like the nation as an entire, chapter charges sank in 2021 in each state, plus the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.
In fact the U.S. is just not lower from one fabric, and notable variations may be seen within the chapter charges throughout completely different states. On the highest finish, Alabama registered 3.13 chapter filings per 1,000 residents in 2021, whereas Alaska noticed a tenth of that, at 0.31 filings per 1,000 residents.
Supply: American Chapter Institute, November 2021
The Particular person Chapter Prime 10
Alabama has persistently held that prime spot since 2017. The ten highest states for particular person bankruptcies in 2021 have been:
- Alabama, with 3.13 chapter filings per capita
- Nevada, with 2.57
- Tennessee, with 2.40
- Indiana, with 2.17
- Georgia, with 2.12
- Mississippi, with 2.03
- Kentucky, with 2.00
- Utah, with 1.97
- Delaware, with 1.83
- Arkansas, with 1.82
On the low finish, along with Alaska, have been Vermont, with 0.44 chapter filings per capita; Maine, with 0.48; and the District of Columbia, with 0.50. Generally, the states with the bottom chapter charges are likely to have a number of the smallest general populations.
Supply: American Chapter Institute, November 2021
The Backside Line
Because the map above (utilizing 2020 information) illustrates, lots of the states with the very best chapter charges per capita are within the South, together with Alabama, Tennessee, Mississippi, Georgia, and Arkansas. Two extra within the Prime 10 hyperlink the South to the Midwest: Kentucky and Indiana. Nevada and Utah within the West have seen their charges rise relative to different states.
Methodology
The American Chapter Institute has been monitoring and reporting on Chapter 7 and 13 chapter submitting charges since 2012, releasing a month-to-month report of information every month. Although extra detailed information on filings and outcomes may be obtained from the U.S. Courts system, that extra strong dataset is just revealed quarterly and lags barely behind the month-to-month ABI experiences.